You spent a fortune on your MP3 collection. Are you insured?

Like many people, you might’ve spent a huge chunk of change on your MP3 collection. With MP3s costing around a buck a pop, your MP3 player could be loaded with thousands of dollars worth of music. My Creative Zen has over 3,000 songs on it, but the vast majority of my collection are ripped from CDs.

So you have downloaded thousands of legal MP3s and actually paid for them. What would happen if your PC and MP3 player were lost in a fire or stolen? If you had renters or homeowners insurance, you probably feel confident that your expensive MP3 collection would be covered, along with your lost hardware. Am I right? Sorry. Your MP3 collection is not covered by your insurance.

In researching this article, I contacted representatives from Progressive Insurance and Farmers Insurance, where I have my auto and homeowners insurance policies respectively. Each representative had to research my question and get back to me. I am guessing that this question does not get asked everyday. In each case, I was informed that MP3 collections are not covered under their policies.

What can you do to protect yourself against a financial sting if you lose your MP3 collection? One word: redundancy. Back up your MP3 files and never keep the hardware containing your files in the same place. For example, you might keep your MP3 player in your car and your PC at home. There are also online storage options where you can backup your MP3 files to an online server. Click here for a list of free online storage sites.

If your MP3 files are not backed up, I would suggest that you explore your options immediately before you suffer a shock loss to your wallet.